Sensex ends in red for 2nd consecutive week, down 251 points
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Sensex ends in red for 2nd consecutive week, down 251 points

Last Updated: Saturday, June 15, 2013, 16:04
 
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Sensex ends in red for 2nd consecutive week, down 251 points
Mumbai: In spite of last day recovery on hopes of rate cut from Reserve Bank of India, both the key indices, S&P BSE benchmark S&P Sensex and Nifty ended in the red by over one percent for the second consecutive week on persistent selling pressure following fall in the rupee value to an all-time low.

Fresh capital outflows also affected the market sentiment as Foreign Institutional Investors (FIIs) sold shares worth Rs 2,515.68 crore during the week, including the provisional figure of June 14.

Shares of Consumer Durable, Metal, Realty, Power and PSU sectors declined sharply on selling pressure from operators.

The benchmark S&P BSE Sensex resumed higher at 19,530.35 and moved up further to 19,585.75 on select buying mainly in IT sectors in view of depreciation of rupee value to lifetime low of 58.98 against the dollar.

However, it later turned negative and dropped to a low of 18,765.53 on profit-booking before recovering on the last day to end the week at 19,177.93, still showing a loss of 251.30 points or 1.29 per cent. It has lost 582.37 points or 2.95 per cent in the last two weeks.

The NSE 50-share Nifty also dropped by 72.60 points or 1.23 percent to finish at 5,808.40.

Markets recovered at the end of the week due to fag-end buying on expectation of rate cut from RBI in view of fall in inflation after WPI inflation fell to over three-and-half-year low to 4.7 percent in May.

Finance Minister P Chidambaram's comment that government would announce steps soon to boost investment and growth also supported the market during the fag end of the week.

Lower inflation on account of declining prices of manufactured items and recent weak IIP data boosted hopes of monetary action by RBI on June 17, traders said.

The retail inflation (CPI) declined to 9.31 percent in May from 9.39 percent in April while industrial output growth (IIP) slowed down to two percent in April this year from the revised 3.4 percent in last month.

"Rupee's sudden depreciation has led to some outflows and correction in the equity markets as well," said Lalit Thakkar, MD -Institution, Angel Broking.
20 shares out of the 30-share Sensex pack ended lower while 10 shares finished with gains.

Among the major indices, S&P BSE-CD dropped by 10.72 percent followed by S&P BSE-Metal 5.47 percent, S&P BSE-Realty 4.83 percent, S&P BSE-Power 3.54 percent, S&P BSE-PSU 3.21 percent, S&P BSE-Bankex 2.58 percent and the S&P BSE-IT 2.37 percent.

S&P BSE-Small-cap and S&P BSE-Mid-cap indices also declined by 3.18 percent and 3.24 percent on selling pressure from retail investors.

The total turnover at BSE and NSE rose to Rs 9,845.95 crore and Rs 51,080.54 crore, respectively from the last weekend's level of Rs 8,946.16 crore and Rs 46,744.48 crore.

PTI



First Published: Saturday, June 15, 2013, 11:02


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